Middle East energy: Bahrain oil discovery and Saudi pipeline repairs

Bahrain has identified a significant offshore oil and gas field, the Khalij al-Bahrain, located in shallow waters west of the island. The discovery includes an estimated 80 billion barrels of oil in place and 400 billion cubic meters of gas. Because the field is in shallow water, development may benefit from lower infrastructure and equipment costs compared to deep-water projects.

Meanwhile, Saudi Arabia is working to restore its strategic East-West Pipeline following recent drone attacks. Saudi Aramco aims to restore approximately half of the pipeline's capacity within days, with a goal of full capacity restoration in about six weeks. To mitigate supply concerns, Aramco has increased oil sales from ports outside the Strait of Hormuz, including 20 million barrels destined for Asian customers in September and October.